No Medical Exam…Is This a Wise Strategy?

Thursday, February 18, 2010

It seems as though everyone is advertising the fact that they are offering an abundance of life insurance policies that do not require the policyholder to undertake a medical examination. But doesn’t this beg the question, if everyone is offering policies like this, is it really in the customer’s best interest? While it is the case that life insurance policies are a lot more customer friendly than they were in the past, there are still some things that one must take into account when considering a “No Medical Exam Policy”.

A no medical exam policy is a good option for a person who is in fine health and who is looking for life insurance coverage quickly. If you do not have time to go through the entire underwriting process, this is really your only option. Quite simply it works for both sides if someone can apply with the ease of a no medical exam policy. You can apply for these online. Most of these policies tend to be for a rather low amount but some of them have even been known to go up to as much as £500,000 depending on the age of the applicant. Another benefit of these policies is that carriers will often offer the option to pay by credit card, something that is abnormal for insurance policies. The ease with which these are secured is often quite a draw.

The convenience with which these polices can be obtained can come at a cost and even though it’s not that big a problem for the young and healthy, it can become more of an issue when older and unhealthy. If you are getting on in age or are a smoker, it’s probably best to compare the different types of policies.

Another important thing to remember when securing a life insurance policy is that most policies will have a two year period of contestability. This means that any misrepresentation of a healthy lifestyle or even driving records could result in the voiding of a policy. The golden rule here is that if you cannot answer any of the policy questions clearly than it’s probably best that you go through the underwriting process.

So although these policies may seem attractive, it is not always the case that they are in your best interest. As with anything, make sure that you do your research and always tell the truth.


Roger Putnam